ReportWire

Tag: Sergio Massa

  • China reportedly suspends US$6.5 billion currency swap agreement with Argentina

    China reportedly suspends US$6.5 billion currency swap agreement with Argentina

    [ad_1]

    China has suspended a US$6.5 billion currency swap agreement with Argentina, and the freeze remains in effect until President Javier Milei demonstrates a clear intention to engage with Beijing, Argentine media have reported.

    News of the move comes just 10 days into the tenure of the new president, who campaigned on breaking ties with China, and underscores the challenge Milei will face in trying to follow through with those pledges.

    Asked to comment, Zhicheng Xie, the spokesperson for the Chinese embassy in Argentina, declined to confirm the reports.

    Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.

    In Beijing, Chinese Foreign Ministry spokesperson Wang Wenbin also refused to confirm or deny the reports on Wednesday, only saying that China remained committed “to cooperation with Argentina on the basis of equality and mutual benefit”.

    Argentine President Javier Milei speaking at his inauguration on December 10 in Buenos Aires. Photo: AP alt=Argentine President Javier Milei speaking at his inauguration on December 10 in Buenos Aires. Photo: AP>

    The funding is part of a deal renewed annually since 2009, crucial for Buenos Aires due to its negative holdings of international dollar reserves. Argentina has relied on such swaps as one of its few credit options, given the South American nation’s reputation for defaulting on international debt.

    The funds, which China first promised in October to Sergio Massa, then Argentina’s economic minister, were primarily intended to bolster imports and meet obligations to the International Monetary Fund.

    Massa was also running for president at the time and lost to Milei, whose campaign included significant anti-China rhetoric. Despite that, after his inauguration on December 10, Milei reached out to Chinese President Xi Jinping and requested continuation of those agreements, according to Pagina 12, an Argentine newspaper.

    Two days later, Argentina’s foreign affairs minister, Diana Mondino, met with Wu Weihua, Xi’s special envoy to the inauguration, and urged a swift renewal of the agreement.

    According to Infobae, an Argentine news website, China’s decision followed Argentina’s purchase of used F-16 fighters from Denmark. The aircraft were originally manufactured in the US.

    Confirmation of the deal has not been officially announced, but Infobae reported that Luis Petri, Argentina’s defence minister, met on Monday with Xavier Julian Isaac, the brigadier general of its air force, to confirm Milei’s intention to acquire the F-16s.

    Before Milei’s election, Argentina had been in talks to acquire new Chinese JF-17 Thunder jets. That prospect reportedly displeased Washington, which is trying to limit Beijing’s influence in South America.

    The US has not only approved the sale of the F-16s to Argentina but also pledged weapons, training, logistical support and spare parts for the jets.

    Infobae also reported that China was waiting for “a clear gesture of goodwill or friendship” from Argentina to resume the currency swap.

    The news site said that China’s ambassador to Argentina, Wang Wei, had been recalled to Beijing to discuss Milei’s plans and approach to projects Xi has prioritised.

    Patricio Giusto of the Sino-Argentine Observatory in Buenos Aires called China’s freezing of funds concerning. Without the financial cushion provided by the US$6.5 billion, he noted, Argentina would need to renegotiate its debt with the IMF, demanding a search for alternative funding sources, a task Giusto deemed “not easy at all”.

    Giusto suggested that China’s displeasure might extend beyond these individual decisions, seeking a broader shift in Argentine foreign policy. Buenos Aires’ recent refusal to join the China-led Brics economic bloc, and its potential abandonment of a Belt and Road Initiative project signal a possible realignment of Argentina’s international partnerships, which might prompt China to exert pressure through economic means.

    “This interdependence we have with China is irreplaceable. We cannot replace it now with the US or Europe,” he said.

    Milei’s administration, he said, should “try to understand better what China represents and how Chinese diplomacy works, because there will be a lot of trouble ahead if this [relationship] is not properly addressed”.

    This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2023 South China Morning Post Publishers Ltd. All rights reserved.

    Copyright (c) 2023. South China Morning Post Publishers Ltd. All rights reserved.

    [ad_2]

    Source link

  • Polls Open For Argentina Election That Could See Right-Wing Populist Win The Presidency

    Polls Open For Argentina Election That Could See Right-Wing Populist Win The Presidency

    [ad_1]

    BUENOS AIRES, Argentina (AP) — Argentines were going to the polls Sunday, as frustrated voters weigh handing the presidency to an anti-establishment, right-wing populist who has shaken up the political system and pledges to drastically overhaul the state.

    Javier Milei, a self-described anarcho-capitalist who admires former U.S. President Donald Trump, sent shockwaves through the nation after receiving the most votes in the August primaries. The economist and first-year lawmaker has said he will slash public spending, halve the number of government ministries, eliminate the central bank and replace the local currency with the U.S. dollar.

    He first made a name for himself with angry tirades blasting what he calls the “political caste” on television, and has gained support from Argentines struggling to make ends meet amid annual inflation of 140% and a rapidly depreciating currency. His platform also calls for reshaping Argentine culture, and he casts himself as a crusader against the sinister forces of socialism at home and abroad.

    “Argentina is in for a wild ride,” Benjamin Gedan, director of the Latin America program at the Washington-based Wilson Center, said. “The most likely scenario is rather worrisome, a polarized society, divided congress, combative and inexperienced leader and an economy hurtling toward an abyss.”

    Polls opened at 8 a.m. (1100 GMT) and would close 10 hours later. Voting is conducted with paper ballots, making the count unpredictable, but initial results were expected around four hours after polls close.

    Pre-election polls, which have been notoriously unreliable, gave Milei a slight lead that would be insufficient to avoid a runoff in November. In order to win outright, a candidate has to receive 45% of the vote, or 40% and a 10-point difference with the runner-up.

    Whatever the results, Milei has already inserted himself and his libertarian party into a political structure dominated by a center-left and a center-right coalition for almost two decades.

    Former Security Minister Patricia Bullrich of the main opposition coalition battled Milei for right-wing support and argued her team had the necessary connections and experience negotiating legislation to bring about the change the country needed.

    Sergio Massa, Argentine Economy Minister and ruling party presidential candidate acknowledges the crowd during a campaign event in Buenos Aires, Argentina, Tuesday, Oct. 17, 2023. (AP Photo/Natacha Pisarenko)

    AP Photo/Natacha Pisarenko

    Economy Minister Sergio Massa, a leading figure in the center-left administration in power since 2019 and in second place in most polls, sought to rally support despite the fact inflation has soared on his watch. He blamed recent troubles on a historic drought that decimated exports and said he prevented things from getting worse.

    “The worst is over,” Massa often said at his rallies.

    On the streets of Argentina, citizens are skeptical of that, and they are bracing for impact. Those with any disposable income are snapping up goods in anticipation of a possible currency devaluation. The day after the primaries, the government devalued the peso by nearly 20%.

    Argentines were also buying dollars and removing hard currency deposits from banks as the peso accelerated its already steady depreciation.

    Alfredo Adrián Fernández, a 36-year-old who works in his family’s bakery on the outskirts of Buenos Aires, is fed up.

    “We’re tired of one day waking up and beef is 3,000 pesos and in a few hours, it’s 4,000 pesos. The Argentine people are exhausted by their salaries getting devoured by inflation,” he said.

    Massa and Bullrich focused much of their firepower in the campaign’s final days on warning voters against electing Milei, painting him as a dangerous upstart. Massa in particular said that Milei’s plans could have devastating effects on social welfare programs, education and health care.

    The health, education and social development ministries are among those Milei wants to extinguish.

    Milei characterized his two main opponents as part of the entrenched and corrupt establishment that brought South America’s second-largest economy to its knees. That message resonated among many Argentines who watched their economic prospects wither under successive administrations in which both Massa and Bullrich served.

    Milei also railed against what he called the “socialist agenda.” He opposes sex education, feminist policies and abortion, which is legal in Argentina. He called the notion of social justice “an aberration” and disputed that humans have had a role in causing climate change.

    “What madness are we living in? The madness of stupid political correctness where, basically, if you don’t recite the ‘cool socialism,’ if you aren’t ‘woke,’ then you’re violent, you’re a danger to democracy,” he said in a television interview last month.

    As a rising star in the global culture wars, Milei received support from several like-minded leaders, including Brazil’s former far-right president, Jair Bolsonaro. Bolsonaro’s lawmaker son, Eduardo, planned to follow the election from Milei’s campaign headquarters as were several leaders of Spain’s far-right Vox party.

    “We’re a global phenomenon,” Milei said in his closing rally Wednesday, weeks after former Fox News host Tucker Carlson admiringly interviewed him.

    The election comes at a time when several Latin American countries have seen elections marked by anti-incumbent sentiment and political outsiders amid general discontent over the economy and crime. Daniel Noboa, an inexperienced politician who is the heir to a banana fortune, won the presidency in Ecuador earlier this month.

    Like Trump and Bolsonaro, Milei already was casting doubt on the electoral system. He said fraud cost him as many as five points in the primaries, although he never filed any complaints in court. Political analysts warned that Milei could be setting the stage to question the results of Sunday’s election.

    [ad_2]

    Source link